WHAT TO EXPECT IN A RESIDENTIAL TRANSACTION
Buying a home involves several stages. Below is a list of the more common steps during a residential transaction.
Your situation may vary and it is best to contact your real estate professional for more information.
Common Steps for Buying a Home
Initial Meeting
- Select real estate agent
- Determine needs and wants
- Determine financial eligibility
Loan Qualification
- Discuss finances
- Obtain prequalification
Find a Home
- Select an affordable property that fits your needs
- Discuss offer with agent
- Buyer reviews contract with agent
- Agent presents offer to selling side
Present and Negotiate Offer
- Buyer prepares "earnest money" deposit (typically, 1 to 3% of purchase price)
- Seller accepts offer (Seller can accept your offer, counter your offer, or reject your offer)
Open Escrow
- Deposit "earnest money" into escrow
- Escrow will order Preliminary Report
Submit Loan Application
Contingency Period
- Conduct Physical Inspection of property by a qualified inspector
- Approve seller's Transfer Disclosure Statement
- Approve Preliminary Report
- Conduct property appraisal
- Obtain loan approval from lender
- Perform termite inspection and certification
Obtain Homeowner's Insurance
- Select insurance company and coverage
- Insurance will be in effect at close of escrow
If applicable, obtain Home Warranty insurance Sign Documents
- Novare Title receives signed documents
Down Payment
- Need cashier's check or money transfer prior to closing date
Closing the Escrow
- Deposit down payment and closing costs to escrow
- Lender sends balance of purchase price to Novare
- Deed is recorded with County Recorder's office
- Get your keys and move in!
